E-commerce to drive growth

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THE National Economic and Development Authority (NEDA) said efficient and affordable ecommerce can help sustain the Philippine economy and drive growth, as the country continues to manage the coronavirus disease 2019 (COVID-19) risks and prepares for the new normal.

“Online shopping and marketing platforms will play bigger role in the new normal as businesses and consumers increase the use of electronic transactions, including cashless payment system and other financial technology platforms,” Karl Kendrick Chua, NEDA acting secretary, said in a statement yesterday.

The NEDA-led Inter-agency Task Force Technical Working Group for Anticipatory and Forward Planning’s recent consumer survey showed that many had difficulty in accessing goods and services because of the closure of business establishments, imposition of early curfews and lack of public transportation.

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“Businesses need to innovate and make full use of technology to resume operations and cater to consumer needs and preferences while still managing risks of Covid-19 infection,” Chua said. Among the recommended legislative actions contained in the We Recover as One report is to revisit the Electronic Commerce Act of 2000 to make it more comprehensive in detailing transactions covered by the law, specifying the rights of consumers and strengthening the penalties imposed on service providers.

“Businesses need to make online shopping easy, affordable, and secure for consumers so that they need not go out to buy what they need and want,” Chua said.

Chua added investments in ICT infrastructure will also have to be boosted to meet the surge of online transactions and the consumers’ expectations for reliable digital connectivity.

Financial institutions are also encouraged to implement better cybersecurity measures and regulations for both consumers and merchants/establishments. In addition, changes in consumer preferences such as the rising demand for safe and nutritious food would require strict enforcement of food safety laws, regulations, standards and sanitation protocols. To help protect consumers from loss and uncertainty, information and education campaign on insurance policies will also be needed.

“The passage of the Financial Consumer Protection Bill will provide the regulatory framework to protect the interest of financial consumers and reinforce confidence in financial markets,” Chua said.

Meanwhile, in a separate statement yesterday, Carlos Dominguez, Department of Finance secretary, reiterated that restarting “Build, Build, Build” projects, especially those located in rural areas, will be the best way to revive the economy because of infrastructure spending’s high multiplier effect of raising incomes, stimulating demand and generating new jobs and businesses. The “Build, Build, Build” program will not only rev up the economy, but will also fix the country’s weak infrastructure and logistics network, which has driven up production and operational costs for investors, Dominguez said.

“The main problem of our economy now, as Karl (Chua) mentioned earlier, is liquidity because people have not worked. They have no cash and are therefore, illiquid. And when you have no cash, you don’t buy things. And when you don’t buy things, people don’t manufacture these things. So it’s a vicious circle,” Dominguez said during a recent virtual press briefing.

“So the way you break it is you create employment so that people can receive cash, so that they will be confident to be able to start purchasing things again. And when they do that, the companies, the manufacturers, will also start up and provide jobs,” he added.

With most areas including Metro Manila under general community quarantine, essential and priority public and private construction projects are now allowed but with strict compliance to health and safety protocols.

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